Friday, September 20, 2024
Eskom and energy and chemical business, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively investigate and investigate prospective potential liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to determine the prospective volumes that South Africa necessitates to determine a feasible LNG import current market, combined with the enabling infrastructure, and can be facilitated by government-to-governing administration relations where by vital."
"This initiative concentrates on making use of gas for power generation to supply essential base load electricity and position gas to be a essential enabler of re-industrialisation, while also guaranteeing continued supply to the market by unlocking world-wide LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. The parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised gas strategy, Sasol is working on enabling the future more info supply of LNG to South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The research findings read more from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best prospects for South Africa's energy market, while outlining the challenges associated with eskom vacancies the long-term commitments required for LNG imports," the statement said.